The definition of Lean
“A systematic approach to identifying and Eliminating Waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.”
The five principles of Lean
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
The five elements of standard work
1.Takt time, which is the rate at which products must be made in a process to meet customer demand
2. The precise work sequence in which an operator performs tasks within Takt time
3. The standard inventory, including units in machines, required to keep the process operating smoothly
4. The cycle times required to complete work elements
5. All process quality checks required to minimize defects/errors
Friday, April 29, 2011
5 Principles of lean & 3 elements of standard work
The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve:
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
Standardized work consists of three elements:
1. Takt time, which is the rate at which products must be made in a process to meet customer demand
2. The precise work sequence in which an operator performs tasks within Takt time
3. The standard inventory, including units in machines, required to keep the process operating smoothly
Additional elements that can be included
4. The cycle times required to complete work elements
5. All process quality checks required to minimize defects/errors
The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve:
1. Specify value from the standpoint of the end customer by product family.
2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.
3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.
4. As flow is introduced, let customers pull value from the next upstream activity.
5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
Standardized work consists of three elements:
1. Takt time, which is the rate at which products must be made in a process to meet customer demand
2. The precise work sequence in which an operator performs tasks within Takt time
3. The standard inventory, including units in machines, required to keep the process operating smoothly
Additional elements that can be included
4. The cycle times required to complete work elements
5. All process quality checks required to minimize defects/errors
Saturday, March 26, 2011
Joe Perillo will be teaching a lean management analyst course at the Penn State Abington campus that will run for 7 weeks.
The class is from 6 to 9 pm every Tuesday night starting April 5th.
The cost per student is $495 If you have any questions please contact: Eva Klein Assistant Director of Continuing Education and Summer Programs evaklein@psu.edu Office (215) 881-7387 Fax (215) 881-7317 Penn State course link http://lnkd.in/Njzxsp less
The class is from 6 to 9 pm every Tuesday night starting April 5th.
The cost per student is $495 If you have any questions please contact: Eva Klein Assistant Director of Continuing Education and Summer Programs evaklein@psu.edu Office (215) 881-7387 Fax (215) 881-7317 Penn State course link http://lnkd.in/Njzxsp less
Friday, January 21, 2011
Six Year Trend Analysis on Steel Pricing and 10 Year History on AMM HRC Steel Sheet Index
The six year trend analysis on HRC reviews the 2004 and 2008 steel pricing bubbles.
The analysis for both the 6 year and the 10 year analysis show the cyclical price fluctuations that were based on quarterly supply and demand activity.
Steel price activity has been mainly influenced by recent scrap, iron ore coking coal prices due to the bad weather and flooding in Australia, but without an increase in demand these price increases will be short lived.
From an economic recovery view point we see upward trends in several areas including manufacturing but the residential and commercial building sectors are still struggling. I believe this struggle will continue to impact steel pricing well into 2012 and 2013.
Form the trend we see increases in steel pricing through Q1 and partial of Q2 2011 with a down turn in pricing as early as April.
The down turn may be delayed until May/June due to the flooding in Australia
Major Points on Steel Trends
HRC steel pricing follows a roller coaster pattern
There were two major price bubbles in the last six years (2004 & 2008) with increasing prices averages increasing after prices stabilized.
The steel contract lock-in strategy allows you to monitor the market trend and lock-in on the down turn of pricing.
The length of the contract depends on the market condition. If pricing forecast are trending down the contract will be shorter if pricing forecast are increasing the contracts will be longer.
Normal contract lengths are completed in quarters but depending on market condition the range can be one month to six months and in special cases 12 months.
The six year trend analysis on HRC reviews the 2004 and 2008 steel pricing bubbles.
The analysis for both the 6 year and the 10 year analysis show the cyclical price fluctuations that were based on quarterly supply and demand activity.
Steel price activity has been mainly influenced by recent scrap, iron ore coking coal prices due to the bad weather and flooding in Australia, but without an increase in demand these price increases will be short lived.
From an economic recovery view point we see upward trends in several areas including manufacturing but the residential and commercial building sectors are still struggling. I believe this struggle will continue to impact steel pricing well into 2012 and 2013.
Form the trend we see increases in steel pricing through Q1 and partial of Q2 2011 with a down turn in pricing as early as April.
The down turn may be delayed until May/June due to the flooding in Australia
Major Points on Steel Trends
HRC steel pricing follows a roller coaster pattern
There were two major price bubbles in the last six years (2004 & 2008) with increasing prices averages increasing after prices stabilized.
The steel contract lock-in strategy allows you to monitor the market trend and lock-in on the down turn of pricing.
The length of the contract depends on the market condition. If pricing forecast are trending down the contract will be shorter if pricing forecast are increasing the contracts will be longer.
Normal contract lengths are completed in quarters but depending on market condition the range can be one month to six months and in special cases 12 months.
Sunday, January 9, 2011
I just completed a six year trend analysis on HRC and outside of the 2004 and spring 2008 steel pricing bubbles the cyclical price fluctuations were based on quarterly supply and demand activity. I also see price increasing through Q1 and partial of Q2 2011. It’s obvious that steel price activity has been mainly influenced by recent scrap, iron ore coking coal prices, but without an increase in demand these price increases will be short lived. From an economic recovery view point we see upward trends in several areas including manufacturing but the residential and commercial building sectors are still struggling. I believe this struggle will continue to impact steel pricing well into 2012 and 2013. Joe Perillo
Monday, December 20, 2010
Lean Management Analyst Course at Penn State Abington
Lean Management Analyst Course at Penn State Abington 2011 Spring Semester. Visit http://www.abington.psu.edu/psasite/ce/ for more details
Lean Management Analyst
Lean principles offer tangible solutions to drastically cut waste, thereby improving quality, productivity and profitability. The fundamentals of Lean embrace the identification and elimination of waste throughout the entire supply chain, ultimately resulting in a more efficient business environment.
As a lean management analyst you will be able to help a company become more competitive, improve capacity and improve profitability by analyzing business processes utilizing lean enterprise principles.
This program teaches the fundamentals and techniques of Lean management, and facilitates the follow-up skills necessary to achieve successful results from the shop floor to the top floor.
Why You Should Take This Course:
• Add value to your resume! Knowing how to save a company money is a valued skill that will make a current or prospective employer take notice!
• Learn a skill that translates across all types of industries – from healthcare to manufacturing.
• Master the tools needed to market yourself as a problem solver. Be the person that can break through company “silos” and see the big picture!
Lean Management Analyst Course Schedule:
• Course Length: Seven Weeks One Night Per Week
• Dates: 2011 Spring Semester April 5th (no class 4/19) through May 24th
• Time: 6:00–9:00 p.m. Tuesday Nights
• Location: Penn State Abington Pennsylvania
• Fee: $495
• Credit: 2.1 CEU’s given
Lean Management Analyst
Lean principles offer tangible solutions to drastically cut waste, thereby improving quality, productivity and profitability. The fundamentals of Lean embrace the identification and elimination of waste throughout the entire supply chain, ultimately resulting in a more efficient business environment.
As a lean management analyst you will be able to help a company become more competitive, improve capacity and improve profitability by analyzing business processes utilizing lean enterprise principles.
This program teaches the fundamentals and techniques of Lean management, and facilitates the follow-up skills necessary to achieve successful results from the shop floor to the top floor.
Why You Should Take This Course:
• Add value to your resume! Knowing how to save a company money is a valued skill that will make a current or prospective employer take notice!
• Learn a skill that translates across all types of industries – from healthcare to manufacturing.
• Master the tools needed to market yourself as a problem solver. Be the person that can break through company “silos” and see the big picture!
Lean Management Analyst Course Schedule:
• Course Length: Seven Weeks One Night Per Week
• Dates: 2011 Spring Semester April 5th (no class 4/19) through May 24th
• Time: 6:00–9:00 p.m. Tuesday Nights
• Location: Penn State Abington Pennsylvania
• Fee: $495
• Credit: 2.1 CEU’s given
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